Entrepreneurial Strategy for Online Mortgage Broker

This assignment requires the application of entrepreneurial strategies to an online mortgage broker business, including a SWOT analysis, PESTEL analysis, and Porter's Five Forces model. The goal is to identify internal and external challenges facing the business and develop strategies to overcome them, with a focus on achieving competitive advantages and satisfying customers.

Entrepreneurial
Strategy

Table of Contents
.........................................................................................................................................................1
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
SWOT analysis............................................................................................................................3
PESTEL analysis.........................................................................................................................3
Porters five force model..............................................................................................................4
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Entrepreneurial strategy is the way through which an corporation or organization
establishes and re-establish its fundamental set of relationships with the environment (Johnson
and Van de Ven, 2017). In simple terms it can be said that, entrepreneurial strategy is the group
of various decisions as well as action which are taken in the organisation at the time of launching
a new products for achieving competitive advantages within market area. The report is based on
Hey Habito Ltd., Which is a online mortgage broker (The free online mortgage broker, 2019). In
this report the SWOT analysis will be conducted for analysing internal factors of the
organisation. Along with this, PESTEL will be conducted for analysis external factors which is
necessary for easy as well as smooth running of business. Moreover, it is necessary to analyse
competitive market which can be possible through porters five force model as well as TOWS is
the theory which help in identifying strength, weakness, opportunity and threats of Habito Ltd..
MAIN BODY
SWOT analysis
Followings are the various strengths, weakness, threats and opportunity regarding Hey
Habito Ltd. :
Strengths: The foremost strength of the organization is that it provides a very wide
platform for online mortgage and remortgage services. Way of making interaction with potential
customers and influence them to purchase houses is most effective part of this company. It
allows customers to find best mortgage deal and apply accordingly for further investment, help
in increasing customer base.
Weakness: The hey Habito Ltd. have less global presence as compared top other leading
organizations. Less resources of funds and labour capital, shows main weakness of this company
to run business effectively in real estate business. Its poor management and inappropriate way,
also leads to miss chance of taking government initiatives, for enhancing business.
Opportunity: The company have great opportunity regarding the buy back of shares and
expansion within in the country and outside the company. By investing directly in residential and
commercial property project under scheme of exchange traded funds, give chance to Hey Habito
Ltd. to expand its business more. Along with this, higher liquidity available in market, lower

capital requirement and transaction costs, also lead to make indirect investment in real estate
business.
Threats: The most probable threat for the company is high degree competition in the
country. Here, as this company deals in small sector therefore, financial risk is the major threat
for its business. Because due to less resources, it face difficulties in making more investment in
commercial projects. This would give advantage to its competitors to take over its business in
same marketplace.
PESTEL analysis
Followings are the factors which helps in environment analysis of the organization:
Political factors: New percentage of surcharge imposed by UK Govt. is a biggest
political impact for the organization's profitability. As Hey Habito Ltd. deals in real estate
business, therefore, any changes in legislations would directly impact on company's policy. It has
to make more effective strategies in order to gain loyalty of potential customers. Similarly,
immigration and emigration also create a huge impact on real estate business because, people
have to relocate their houses or businesses, while moving on another place. This would aid Hey
Habito Ltd., to offer them best deals for relocation for personal safety and satisfy demands.
Economical factors: The Brexit forced the financial institutions and banks for a lower
interest rates which hampers their profitability. Therefore, changes in interest, taxation rates
(houses and rent), etc. will create both advantages and disadvantage for Hey Habito Ltd. As
effective taxation rate and good economical condition, help in achieving high growth in real
estate business. In such robust conditions, people also like to make more investment on housing
projects. This would affect other markets also like mortgages, sales of land and properties, raw
materials and more. While, in contrast, fall in economy will tend supply of money more
restrictive as well. Along with this, greater supply of product in such condition also forces prices
downward. Similarly, other factors which affect real estate business are GDP, price of goods,
manufacturing and construction activities, labour price rates and more.
Social factors: Ageing population in UK market may mean a shift toward savings so that
it also impacts on the mortgage services. Rise in crime rate in a particular area, make people
cautious to live such places. Therefore, this may lead to decrease price rates and demand of
purchasing house in such area. It would impact on business of real estate also.

Technological factors: The today's modern technology also hampers the organization in
the form of block chain technology, robotic automations, etc. because these are the both
opportunity and threats to respective organization. This would aid Hey Habito Ltd. to reach its
potential customers and develop interaction via chatbots and other social sites. Here, with
bringing Homepotter's Boost technology, enable agents of real estate business to work more
faster. As this would help in automatically create social media add for promoting business, by
pulling in images, copy or call to action. But for purchasing such technology creates difficulties
for Hey Habito Ltd. as it deals in small sector.
Environmental factors: Transition to a low carbon and resources-efficient future is
underway affecting organization. Sudden natural calamities, landscape and other geo-statistics
news, impact directly on business of real estate organisation. Similarly, natural geographic
boundaries, topography and soil conditions also create a huge impact on development of real
estate business.
Legal factors: The legal factors also effect the organization because legislation related to
the financial transaction effect the services of respective company such as in form of miss selling
of mortgage bonds may results in legal claim. Tax credits, deductions, subsidies and other
government legislations are some ways which boost demand of customers, for purchasing homes
or make investment in real estate business. Government initiatives aid Hey Habito Ltd. In
determining changes in supply and demand as well as identify false trends of marketplace.
Porters five force model
Threats of New Entrants: There are various threats related to the new entrants for the
organization such as innovative ideas in mortgage services, new ways of doing things, etc.
(Karami, 2016). which putts the pressure on the organization to maintain its competitive edge.
Although, threats new entrance is low for Hey Habito Ltd. Because there is requirement of huge
capital for entering into mortgage market area. If an association will enter into respective market
then existing organisations have to build effectual barriers so they can safeguard its competitive
edges.
Bargaining power of suppliers: In the mortgage industry organisations purchase raw
materials from several suppliers. Thus, suppliers in dominant position can decrease the margins
Mortgage Choice Limited can earn in the market. Moreover, powerful suppliers within
respective industry utilise their negotiating power to extract higher prices from the association in

banks field. The powerful suppliers in money/financial market use their power to negotiate
prices. Which will harm the profitability position of organization. In simple term it can be said
that, overall effect of high bargaining power result in lowering overall profitability of Banks.
Bargaining powers of Buyers: In mortgage sector demand of buyers is high as well as
they want best from the availability of market by paying minimum possible price. The smaller
and more powerful the customer base is of Mortgage Choice Limited result in the higher
bargaining power of the customers as well as higher their ability to seek enhancing discounts and
offers.
Threats of substitute products or services: In the mortgage broker market if new
product will be launched which fulfil similar needs of customers in different manner result in
affecting profitability of industry. Because generally substitute with low price result in attracting
customers towards them and decrease loyal buyers of existing associations.
Rivalry among the existing customers: Their is high level of competition in mortgage
industry because every organisation is offering with different rent and brokerage amount. Such
things result in increasing level of competition within respective market. The rivalry among the
existing competitors drive down the prices down which effect the all over industry as well
organization also.
TOWS Analysis:
It is the tool which is used to generate and select strategy that are as follows:
Strength/Opportunities(SO): One of the major strength of hey Habito Ltd. Is their
online platform of mortgage broker. By their strength they can gain several opportunities such as
expanding their online platform at international level. Because there are several nations where
online platform in mortgage procedure is not available. So such practices will result in attracting
more and more people towards its.
Weakness/Opportunities(WO): Physical visibility is an weakness of Hey Habito Ltd.
Which can be overcome when respective company build their offices in the nations they are
dealing. Such practices will result in attracting large number of customers and enhancing
customer base.
Strength/Threats(ST): Their is high level of competition in the mortgage broker market
and through this respective organisation can came out by applying their strength. Because it is an

online mortgage broker providing platform and such associations are less in the market area.
Thus, they can easily come out with the threat of high competition.
Weakness/Threats(WT): Lack of funds and human capital is one of the major weakness
for the organisation which may result in threat. Because if their will be less fund then it become
difficult for them to provide houses on rent to different people. Along with this, without proper
amount of funds it is not possible to expand online mortgage broker business at international
level.
CONCLUSION
From the above discussion it has been concluded that, entrepreneurial strategy is
necessary for the organisation so they can do things in better manner and result in satisfying
customers as well as also in achieving competitive advantages within market area. The Hey
Habito Ltd. is online mortgage broker and also facing various internal and external challenges
which are analysed with the help of SWOT and PESTEL analysis. Apart from this, business
environment is full of competition which require proper analysis and that can be possible only
with the assistance of porter's five for model. It can be say that the organization have need to
implement various strategies after analysing explained models.

REFERENCES
Books&journals
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Johnson, S. and Van de Ven, A.H., 2017. A framework for entrepreneurial strategy. Strategic
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Karami, A., 2016. Strategy formulation in entrepreneurial firms. Routledge.
Online
The free online mortgage broker, 2019. [online]. Available through<https://www.habito.com/>